Will Your Retirement Savings Actually Last?
You’ve spent decades building your retirement nest egg. Now comes the harder question: How do you make it last through 20, 30, or even 40 years of retirement?
Having money saved is only half the battle. Without proper planning, even substantial savings can disappear faster than you think — consumed by market downturns, inflation, taxes, unexpected healthcare costs, and simple longevity.
At Roan Capital Partners, we help East Tennessee families navigate the complex transition from earning paychecks to creating sustainable retirement income that provides security for decades.
Ready to create your retirement income plan? Schedule your free consultation: 423-631-5786
Understanding Retirement Planning Basics
Retirement planning isn’t just about accumulating money — it’s about creating a sustainable income system that supports your lifestyle while preserving capital for decades.
The fundamental retirement planning questions:
1. How much do I need to retire?
The answer depends on your desired lifestyle, expected expenses, healthcare costs, and how long you’ll live. A comfortable retirement in Johnson City requires different resources than expensive coastal cities.
2. When can I afford to retire?
Retiring at 62 looks very different financially than retiring at 67 or 70. Each year makes a substantial difference in Social Security benefits, portfolio withdrawals, and how long your money must last.
3. Where will my income come from?
Most retirees rely on multiple income sources: Social Security, retirement accounts, pensions, part-time work, or rental income. Understanding how these complement each other is critical.
4. How do I minimize taxes in retirement?
Poor tax planning can cost you tens of thousands annually. Strategic withdrawal planning keeps more money in your pocket.
5. What if I live to 95?
Outliving your money is many retirees’ biggest fear. Planning for 30+ year retirements requires different strategies than planning for 15-20 years.
Why East Tennessee retirees have unique advantages:
Tennessee’s tax structure provides significant benefits:
- No state income tax on wages
- No tax on retirement account withdrawals
- No tax on Social Security benefits
- No tax on pension income
- Lower overall cost of living than national average
These advantages mean your retirement dollars stretch further in East Tennessee than in many other states.
Common Retirement Mistakes to Avoid
Why it happens: Immediate cash flow needs, fear of “not getting your money’s worth”
Why it’s costly: Permanently reduced benefits can cost $100,000+ over lifetime
Better approach: Delay if possible, create bridge income from other sources
Why it happens: Most people underestimate how long they’ll live
Reality:
- Man age 65: 50% chance of living past 84
- Woman age 65: 50% chance of living past 87
- Couple age 65: 50% chance one lives past 92
Better approach: Plan for 30-year retirement minimum
Why it happens: Fear of market losses
Why it’s costly: Inflation erodes purchasing power over 30 years; conservative portfolios may not provide adequate growth
Better approach: Maintain appropriate stock allocation for long retirement horizon
Why it happens: Focus on investment returns, ignoring tax implications
Why it’s costly: Poor tax planning can cost 20-30% of returns
Better approach: Strategic withdrawal planning, Roth conversions, tax-loss harvesting
Why it happens: Not understanding true costs of investments and advice
Why it’s costly: 1% in excess fees can cost $200,000+ over 30-year retirement on $500,000 portfolio
Better approach: Low-cost index funds, fee-only advisors, transparent pricing
Tennessee-Specific Retirement Benefits
No state income tax
Tennessee’s lack of state income tax provides substantial benefits:
Annual savings for retiree withdrawing $60,000:
- vs. California (9.3%): $5,580
- vs. New York (6.5%): $3,900
- vs. North Carolina (4.75%): $2,850
30-year savings: $167,000 – $84,000 depending on comparison state
Hall Tax repeal
Tennessee previously taxed investment income (“Hall Tax”) but repealed it fully in 2021. Dividends and interest are now tax-free at the state level.
Lower cost of living
East Tennessee offers:
- Housing costs 15-30% below national average
- Healthcare costs near national average
- Overall cost of living 10-20% below major metro areas
Retirement community amenities
Johnson City, Oak Ridge, and Crossville all offer:
- Quality healthcare facilities
- Recreational opportunities (golf, hiking, lakes)
- Active senior communities
- Cultural amenities
- Proximity to Great Smoky Mountains
When to Hire a Financial Advisor
You might benefit from professional guidance if:
You’re within 5 years of retirement:
Critical decisions about Social Security, healthcare, and income strategies require careful analysis with lasting consequences.
You’re unsure if you have enough saved:
Modeling different scenarios shows whether you can retire when you want or need to adjust plans.
You have multiple account types:
Coordinating traditional IRAs, Roth IRAs, taxable accounts, pensions, and Social Security requires sophisticated tax planning.
You’re overwhelmed by investment choices:
Portfolio construction, rebalancing, and ongoing management benefit from professional expertise.
You’re worried about making mistakes:
Professional guidance prevents costly errors in Social Security timing, Medicare enrollment, or investment strategy.
You want to minimize taxes:
Strategic withdrawal planning and Roth conversion opportunities can save tens of thousands annually.
What to expect from our comprehensive retirement planning services:
Detailed cash flow projections through age 95+
Investment portfolio construction and management
Social Security optimization analysis
Tax-efficient withdrawal strategies
Medicare and healthcare planning
Estate planning coordination
Ongoing monitoring and adjustments
Take Control of Your Retirement Future
Retirement planning isn’t something to figure out alone. The decisions you make in the years immediately before and after retirement have consequences lasting decades.
At Roan Capital Partners, we help East Tennessee families create comprehensive retirement plans providing security, peace of mind, and confidence that your money will last as long as you do.
Schedule your complimentary consultation
Johnson City Office: 423-631-5786
Oak Ridge Office: 865-482-4211
Crossville Office: 931-337-2962
